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Media TEHRAN—The U.S. Department of the Treasury took actions July 25 to reinforce
long-standing U.S. government efforts to ensure that the extensive
economic and financial sanctions on Iran — adopted to encourage Iran to
comply with its international obligations — do not impede Iran's
humanitarian imports.

Treasury's Office of Foreign Assets Control (OFAC) expanded the list
of basic medical supplies authorized for export or re-export to Iran
under an existing general license by adding hundreds of items. OFAC
previously had issued specific licenses authorizing these items. The
office also issued clarifying guidance on existing broad authorizations
and exceptions applicable to the sale of food, agricultural commodities,
medicine and medical devices by non-U.S. persons to Iran.

"Today's action to expand the general license for the export of
medical devices to Iran reflects an important element of our sanctions
policy. Even as we continue to implement and enforce our rigorous
sanctions regime against Iran, we are committed to safeguarding
legitimate humanitarian trade," said Treasury Under Secretary for
Terrorism and Financial Intelligence David S. Cohen.

In the July 25 actions, OFAC expanded the list of basic medical
supplies authorized for export or re-export under an existing general
license, originally issued in October 2012, to include a broad range of
medical supplies and devices, including electrocardiography machines
(EKGs), electroencephalography machines (EEGs) and dialysis machines,
along with other types of equipment that are used by hospitals, clinics
and medical facilities in Iran.

These items, which were previously
eligible for specific licensing from OFAC, can now be exported without
prior approval from the office, Treasury said. Exporters are also
encouraged to apply for specific licenses for medical devices that may
not be included in the expanded list, the department added.

Even as the U.S. and international sanctions have tightened, the
Treasury and State departments have had extensive discussions with
foreign pharmaceutical and medical supply companies that sell, export,
and get paid for exports to Iran, as well as the foreign financial
institutions involved in those transactions, to ensure that the
exemptions from U.S. sanctions are understood.

Medicine and medical
supply exporters reporting barriers to trade have repeatedly pointed to
obstacles placed by the government of Iran, including the Central Bank
of Iran’s failure to allocate sufficient foreign currency, Treasury
said. “The Central Bank of Iran has access to sufficient foreign
currency funds outside of Iran — which are otherwise usable only to fund
bilateral trade— to finance the import of medicines and medical
equipment," Treasury said July 25 in announcing the changes..

As OFAC has made clear in its "Clarifying Guidance: Humanitarian
Assistance and Related Exports to the Iranian People," issued February
6, 2013, and in the Iranian Financial Sanctions Regulations, foreign
financial institutions may process transactions for the purchase of
humanitarian goods, including food, agricultural commodities, medicine
and medical devices, using funds in Central Bank of Iran accounts
without being subject to U.S. sanctions. The July 25 "Guidance on Sales
of Food, Agricultural Commodities, Medicine, and Medical Devices to
Iran" is meant to ensure that all parties to these transactions fully
understand the broad humanitarian allowances embedded in U.S. sanctions
laws, Treasury said.